STOCKHOLM (Reuters) - Paper and packaging firm SCA
<SCAb.ST> said on Wednesday it was restructuring its business,
cutting around 1,400 to 1,700 jobs and taking a fourth-quarter
charge of 4.9 billion Swedish crowns ($749 million).

The Swedish firm said 3.7 billion crowns was related to
impairment charges on non-current assets, while 1.2 billion
crowns would be spent on restructuring measures, resulting in a
net cash expenditure after some disposals of 700 million.

The full amount would be booked against fourth-quarter
results.

"The improvement in operating profit will have full effect
after three years, when it will amount to approximately SEK 1.4
billion per year," the firm said in a statement.

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The firm, which recruited former Boliden <BOL.ST> Chief
Executive Jan Johansson as its top executive this autumn, said
it would carry out measures to boost the competitiveness of its
tissue business and other parts of the group.

Earlier this year, SCA struck a 4.7 billion crown deal to
buy the European tissue business of U.S. consumer goods giant
Procter & Gamble <PG.N>. This would result in annual savings of
about 700 million crowns, SCA said on Tuesday.

"Growth and profitability will be our priorities over the
next few years," Johansson said in a statement.

"The P&G acquisition gives us unique opportunities to
develop our brand platform while improving the efficiency of
our production structure."

The firm, which has been stung by higher raw material and
energy costs in recent quarters, said it would phase out
production capacity for 200,000 to 300,000 tons of paper and 80
million square meters of corrugated board to remain competitive
in a "changed customer structure."

It also said production adjustments and staff cuts would be
made at its Swedish sawmill operations.

In addition to the restructuring measures, the company said
it had raised the value of its forest assets by 5.2 billion
crowns to 23.3 billion.

"The company has performed a review of forest asset
valuations and assessed that timber prices over time will
remain at a higher level than was used in earlier appraisals,"
it said.